WHAT'S NEW?
NEW PAPERS
Abstract
This paper reviews the institutional design of a pilot project financed by the World Bank in the State of Guanajuato, Mexico, as part of its strategy to improve the institutional capacities of local governments in middle-income countries. After two years of implementation, the project has introduced several institutional improvements such as the consideration of investment proposals over a longer term perspective, the strengthening of the agency responsible for protection of the environment, and the adoption of a better framework for dealing with social issues. However, it has failed so far in its principal objective of introducing procedures to ensure that public investments would be sound from a social and environmental viewpoint and that those affected by such investments would have a voice in the decisions about such projects. The paper identifies the project’s institutional design methodology as the primary source of the problems and proposes adoption of the AIC framework for its redesign[1] . This would require (i) establishing a consensus among key stakeholders as to the primary causes of the institutional problems (which the author believes to be the choice of an inappropriate implementation agency and the lack of initial consensus-building processes) to help overcome possible resistance to the proposed changes; (ii) selection of a strengthened alternative implementation agency which would already have the political and institutional legitimacy to promote the intended policy changes; and (iii) design of detailed consultative procedures for implementation by all agencies concerned and strengthening of their process capabilities. The advent of a new administration in 2006 provides a unique opportunity to attempt such changes.
[1] The AIC framework approaches institutional design in terms of both structures and processes. The structural design framework considers: (i) the institution’s appreciative (or enabling) environment which is comprised of factors such as physical, socio-cultural, political, economic, and institutional; (ii) its influenceable environment which refers to those external elements such as its clients, financiers, suppliers, and affected communities whose support is essential; and (iii) its controlled (or internal) institutional environment. In terms of institutional design process, the AIC framework similarly provides for 3 steps: (i) the development of agreed upon common goals; (ii) the design of the relationships among stakeholders; and (iii) the preparation of operational plans, creation of internal organizational relationships and incentives, and establishment of feedback mechanisms. See ODII, http://www.odii.com/
Managing by Influence for the Common Good: India’s SAMBANDH Network
By Santosh Passi, PIDP Fellow1Abstract.
This paper reviews the institutional design of a network of NGOs in Northern India and analyzes the reasons for its success. Essentially, it is due to the remarkable ability of the network’s low-profile leadership to avoid the traditional top-down management style and instead, manage by influence. They did so by (i) ensuring that members strongly shared common purposes so as to strengthen the network’s cohesiveness, (ii)“empowering” members through provision of effective common logistical, informational, and training services, and (iii) engineering a policy coalition giving members and non-members highly visible roles and full credit for their contributions. The paper also argues that external donors should adopt a similar management style in their relations with the network, as the traditional top-down project design approach would be antithetical to the very reasons for the network’s success.Abstract. This paper highlights the relevance of the AIC methodology of institutional design to ensure that post-conflict reconstruction efforts will have a lasting impact. In this case, the challenge was how best to integrate Kosovo’s Customs Service (UCS) – an agency created and administered by the UN Mission to Kosovo--within the Province’s future administration, while ensuring its continued professional competency and integrity. Designers unfortunately chose a “control approach” which led to a conflict with national authorities. Instead, argues the paper, they should have first searched for common ground on objectives with UCS’ key stakeholders, agreed with them on the agency’s location within Government, and only then designed external linkages and internal arrangements. The case also illustrates the risks for a key stakeholder to act as the institutional designer, rather than rely on independent professional assistance
Where Does Power come From? William E. Smith Ph.D October 2004
This
paper, the most fundamental on AIC to date, searches for the roots of the purpose, power field relationships at the heart of the AIC philosophy,
model and process. . It takes us on a journey through Science and Religion to
finally discover the roots in ourselves, our own brain and nervous system.
TRANSFORMING ORGANIZATIONS: A FIVE DIMENSIONAL PROCESS" William E. Smith PhD, and Elizabeth B. Davis PhD, May 2004
Prepared for the 3rd International Conference on Systems Thinking in Management (ICSTM '04): (May 19-21, 2004, University of Pennsylvania, Philadelphia PA), this paper presents an organizing process that is based on a synthesis of sociology, systems, power and field theories.
The paper provides:
- A new basis on which to build organization theory – the assertion that "Purpose is the source of Power"
- A redefinition of actor/environment relationships as power relationships.
- A new model then enables us to better understand the process by which purpose is generated and translated into effective action.
- An understanding that enables us to design improved organizational processes that uses more of the potential power available to them than do more traditional models.
- A description of practice that enables organizations to achieve higher levels of purpose, at relatively less cost, in relatively shorter periods of time with much less emphasis on using expensive control mechanisms.